Polymarket: Reservist investigated for using classified military info to gamble
The IDF responded to the scandal saying Polymarket bets using classified info a ‘clear red line crossing’ and vows strict action against all those involved
The recent investigation into an Israeli reservist and civilian suspected of using classified information to gamble has put the prediction trading platform Polymarket in the spotlight.
The platform, which allows users to place bets on the outcomes of future events, has grown rapidly over the past two years, hosting markets on politics, sports, economics, and international security developments.
Polymarket was founded in 2020 by entrepreneur Shayne Coplan and operates on the Polygon blockchain network, using the stablecoin USDC for transactions. Users bet by choosing “Yes” or “No” options, with share prices fluctuating in real time according to supply and demand. Each bet totals one dollar, and users who predict correctly receive one dollar per share, while losing shares expire worthless.
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The platform gained significant attention during the 2024 U.S. presidential election, when trading volume around the Trump-Harris race reached $2.7 billion. Polymarket’s forecasts during the campaign often outperformed traditional polls, predicting Trump’s victory at higher probabilities. The company is now valued at approximately $9 billion, with backing from investors including Ethereum founder Vitalik Buterin and the parent company of the New York Stock Exchange.
Despite its growth, Polymarket has faced regulatory scrutiny. In the United States, the Commodity Futures Trading Commission fined the platform for operating without proper registration. Analysts have warned that prediction markets are susceptible to misuse of insider information or manipulation, concerns highlighted by the current investigation in Israel.
An IDF spokesperson said the use of classified information for personal gain is a “serious ethical lapse and a clear red line crossing” that violates the values expected of service members. “Criminal and command procedures will be taken against any party involved,” the spokesperson added. The IDF clarified that no operational harm resulted from the incident but said procedures will be tightened across all units to prevent similar breaches in the future.